The Australian dollar extended its relentless rise, reaching the highest levels since October 2017. Can it move even higher? The big event of the upcoming week is the retail sales report. Here are the highlights of the week and an updated technical analysis for AUD/USD.
China’s Caixin manufacturing PMI advanced to 51.5 points, implying better growth in Australia’s No. 1 trading partner. This joined positive figures from Australia and the weakness of the US dollar. The greenback ignored upbeat US figures as well as a balanced meeting minutes report from the Fed.
Updates:
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
AIG Construction Index: Sunday, 22:30. The construction sector is doing well according to the Australian Industry Group. A score of 57.5 points on the PMI-like indicator in November reflects upbeat growth. We could see a setback now.
Building Approvals: Tuesday, 00:30. The number of building approvals has increased in the past three months, rising by 0.9% October, beating expectations. This important gauge of the housing sector could dip now. A slide of 0.9% is forecast.
ANZ Job Advertisements: Tuesday, 00:30. The Australia and New Zealand Banking Group provides this interesting indicator for the labor market. In November, a gain of 1.5% in advertised jobs was seen.
Retail Sales: Thursday, 00:30. Australia is trying to move away from its reliance on the mining sector. An increase in consumption is key. A rise of 0.5% was seen in October, beating expectations and aiding the Aussie. Will we see another climb for November? A rise of 0.4% is projected.
Chinese trade balance:Friday, 3:00. China is Australia’s No. 1 trading partner and its trade affects the land down under. A surplus of 40.2 billion was seen in November. We will now see the data for December and thus the full figures for 2017. A trade balance surplus of 37.4 billion USD is on the cards.
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